Technology

Dish TV's net loss continues to shrink, Q1 rev up 6.3%

MUMBAI: India‘s leading DTH operator, Dish TV, is on course to swing into net profit this fiscal as its first-quarter operating margin continues to improve, subscriber growth stays strong and outlook on ARPU (average revenue per user) elevation is bullish.


The net loss is narrowing for the last five quarters after rising to Rs 631.8 million for the three-month period ended June 2010 compared to Rs 597.73 million in the trailing quarter.


"Net loss continues with its downward trend, making bottom line profitability visible in the coming quarters," says Dish TV managing director Jawahar Goel.


For the three months ended June 2011, net loss narrowed to Rs 183 million, as against Rs 371 million in the preceding quarter.


Shares of Dish TV, however, fell 4.45 per cent to close Wednesday at Rs 89.05, possibly reacting to a marginal increase in the customer drop-out rate. The churn rate rose to 1.1 per cent compared to 1 per cent in the trailing quarter.


"Churn recorded a marginal upward movement, largely due to subscriber inactivity post the cricket World Cup 2011," says Goel.


Media analysts feel the churn rate, which has stayed below one per cent most of the time, could be influenced by a price hike that Dish TV had injected on its set-top boxes. Dish TV calculates its churn rate based on customers who have stopped paying for 120 days.


Dish TV‘s operating revenue rose 6.3 per cent to Rs 4.60 billion, somewhat lower than the market expectations. While subscription revenue accounted for Rs 3.92 billion, lease rental earned Rs 550 million and teleport Rs 30 million. The remaining came from bandwidth charges. 
 
"Subscription revenue grew stronger at eight per cent. The first quarter is always soft. And this time, it followed the cricket World Cup, which was big. We see subsequent quarters picking up," says Dish TV chief executive officer RC Venkateish.


ARPU has stayed flat at Rs 150 but the company sticks to its guidance of Rs 160-165 for the year.


"The ARPU went up from Rs 142 to Rs 150 for the fourth-quarter, which coincided with the cricket World Cup. There was a la carte uptake because of the sports pack. We have maintained this ARPU in the immediate quarter after the World Cup. We see ARPU growing again and should progressively fall in the region of Rs 160-165," says Venkateish.


Dish TV added 725,000 subscribers during the quarter to take its total base to 11.2 million (gross). The net subscriber base of the market leader stands at 8.9 million.


"We are on target with our subscriber growth. We should add 3-3.5 million subscribers this fiscal," says Venkateish. 
 
Dish TV‘s average subscriber acquisition cost (SAC) stands at a historical low of Rs 2,058.


"This could further slide in the next quarter. We had introduced the second rate hike on our set-top boxes in July. Our first rate hike got captured in our first-quarter performance," says Venkateish.


Dish TV has controlled its expenses during the quarter which stood at Rs 3.48 billion, from Rs 3.43 billion in the previous quarter. This was due to a cut in commissioning and marketing expenses. The interest burden also softened due to the gains it got from restructuring rupee to foreign currency loan.


The company‘s Ebitda stands at Rs 1.12 billion, up from Rs 901 million in the preceding quarter.


"The key operating metrics continued to be in line with expectations. Subscriber acquisition cost for the quarter was down to Rs 2,058. Arpu remained steady at Rs 150 despite a higher subscriber base. The Ebitda margin further strengthened to reach 24.4 per cent," says Goel.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/17/Rahul%20Nehra.jpg?itok=mP6RbVf2
Friend MTS-Castle Media to tackle Bollywood's digital piracy using unique watermark tech

MUMBAI: Piracy is a serious challenge to the entertainment industry in India. In fact, according to the Motion Pictures Distributors Association of India (MPDA), India country is infamous for having one of the highest rate of video piracy in the world. Lack of stringent IP protection laws to...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/11/set-top-box-800x800.jpg?itok=pz9wqMdr
India poised to emerge as lucrative market for UHD STBs

The growing inclination of people towards ultra-high definition video viewing can be attributed as a major reason for the 4K Set-Top Box’s (STB) market growth. According to a report by Grand View research, the global 4K STB market size is projected to reach US$7.18 billion by 2024.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/01/Reliance-Jio-800x800_1.jpg?itok=Z9RZ3iGr
Reliance Jio to launch Android powered 4K STBs

Enjoying huge waves of success, Reliance Jio, within few months of its launch, plans to launch Android powered set-top boxes (STBs) in India. Following its idea of providing free 4G internet, this is believed to be Jio's second step in building their envisioned Digital Ecosystem in India.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/10/25/bi-800x800_0.jpg?itok=tfaGWUVv
Highly-beneficial interactions take place at Broadcast India '16

The 26th Broadcast India Show concluded over the weekend in Mumbai, and was easily the most exciting Broadcast India Show yet. With thousands of eager, high-quality trade visitors swarming the show floor, a sentiment signalling highly-beneficial exchanges and interactions echoed through the halls...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/23/Untitled-1_28.jpg?itok=sUqa1jZF
India, China to propel APAC, beat CAS Europe market share

APAC is expected to overtake the market share of Europe in future due to an increasing demand for digital TV set-up boxes in countries such as China and India. North America and Europe dominated the global CAS market in 2015. APAC region is estimated to mark a growth rate of 12.0 per cent CAGR...

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/23/Untitled-1.jpg?itok=I_5UAd8p
India lucrative market for 4K UHD STBs: Grand View Research

Here’s a view on the demand for 4K or ultra high definition (UHD) set-top boxes (STBs) in India.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/19/Untitled-1_0.jpg?itok=Op9PJAk4
Infor appoints Dass as south Asian subcontinent V-P

Infor, a leading provider of business applications specialized by industry and built for the cloud, has appointed Ashish Dass as the vice president and managing director for the south Asian subcontinent. Infor software helps eliminate the need for costly customization through embedded deep...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/06/Untitled-1_12.jpg?itok=gePFFzBo
Siti & DishTV opt for Conax conditional access

The Essel group has been using Conax’s tech for sometime now for its Siti Network (earlier known as Siti Cable). Now the group has extended that partnership for another product for both Siti Network and DTH operator Dish TV India. This time it is for the cardless set top boxes that the two are...

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/06/Imagine%20Communications.jpg?itok=hHV0BPjB
Imagine Communications extends functionality of Selenio One unified transcoding platform to OTT

MUMBAI: Imagine Communications, empowering the media and entertainment industry through transformative innovation, today introduced a high-density adaptive bitrate (ABR) transcoding product built on Selenio One™, the company’s software-defined linear transcoding platform. Selenio One is designed...

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories